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Turkish legal doctrine there is also a view that supports that the notice
period may be extended due to the dynamics of the relationship (
i.e.
the
length of the distribution, the investments made and the nature of the
work).
Article 18/3 of the TCC provides that notices or communications
of default or termination are sufficiently given only if delivered via a
Turkish notary, by telegram, or by registered mail-return receipt
requested, and are deemed to have been given as of the date of proper
service in accordance with Turkish law. Therefore, it may be advisable
to send the termination notice via a Turkish notary public.
b) Termination for Cause
Distribution contracts may be terminated for cause, similar to any
other contract types. The term of the distribution contract does not have
any bearing on the legal analysis regarding termination for cause.
Termination for cause may be possible for all distribution contracts,
whether they are concluded for a limited or for an unlimited period of
time.
A cause is deemed justifiable if it results in such detriment to the
other party as substantially to deprive him of what he is entitled under
the contract. To amount to a justifiable cause, the disturbance must
shake the trust between the parties, with the result that the parties can-
not reasonably be expected to carry on with the contract.
Turkish law would deem any breach by the Distributor of one of
its primary obligations (e.g. default in payment, refusal to report on its
activities, fraudulent behavior etc.) as a justifiable cause.
Where a justifiable cause exists, the distribution relationship may
be terminated with immediate effect by serving a written notice to the
other party. Similar to ordinary termination without cause, the termi-
nation notice should be sent via public notary, telegram, or registered
mail-return receipt requested.
c) Goodwill Indemnity in case of Termination
Before the TCC which entered into force on July 1, 2012 the good-
will indemnity was not prescribed by the provisions related to agency
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NEWSLETTER 2012